Thursday 30 October 2014

1MDB clears the air

1MDB had just issued a press release to clear the air over various allegations directed at it.

I am reproducing it in full here :

Over the past week, there has been considerable speculation about various elements of 1MDB’s business. Whilst the majority of issues have previously been raised and subsequently addressed by the company, we take the allegations very seriously. As such, we wish to take this opportunity to respond to these unsubstantiated claims, with the intention of presenting the other side of the story and allowing readers to develop their own informed views about 1MDB.  
Bond / Debt Issuances
Concerns have been raised about the 5.75% interest rate assigned to a RM5.0 billion Islamic bond that was issued by 1MDB in 2009, with suggestions that this was a bond with a particularly high interest rate. As a comparison, it has been noted that another government-linked company Petronas paid an interest rate of 3.60% on a bond at the same time.
This is an unfair comparison that does not take into account a number of important factors.
When subscribing to a bond, lenders take on a certain degree of risk.  The longer the tenure, the higher the risk for the bondholder.  As such, bonds that have a longer maturity period typically have a higher interest rate. 
As far as we are aware, the only Petronas-related bond issued in 2009 that carried a coupon rate of 3.6% was for a RM100 million bond with the tenure of only three years.
Given the significant difference between the maturity periods, it should not be surprising that the bond issued by 1MDB had a higher interest rate.
More broadly, it is important to note that the bond issued by 1MDB in 2009 was the first Malaysian bond with a 30-year tenure, and the first Islamic bond to be issued with a maturity period of that length. 
Given the economic climate of the time, the fact that 1MDB successfully managed to raise this amount of capital reflects the support, goodwill and confidence placed in the company. 
We have also noted with concern unsubstantiated speculation that a portion of this interest rate has been paid to ‘middle-men’ as a benefit payment of sorts. This is a serious allegation.  We wish to make clear in unequivocal terms that the entirety of the 5.75% annual interest rate is paid to our bondholders, which include some of Malaysia’s leading institutions, twice a year in accordance with the payment schedule. To suggest otherwise or insinuate that a portion of this amount is being paid to middlemen is factually incorrect. 
Further to this, concerns have also been raised about the commission and fees incurred by 1MDB for two additional debt issuances in 2012 and 2013, for US$1.75 billion and US$3.0 billion respectively. 
Both these bonds were issued at a discount typical of most bond offerings.  Any difference between par value (issued value) and the net proceeds of a bond comprises not only fees and other expenses but also its effective yield, which takes into account the discount and the remaining tenure of the bond. 
We would like to make clear that the bulk of the difference between the bonds’ par value and the net proceeds are attributed to the bonds being issued at a discount. This decision is to ensure the successful completion of the fundraising in view of internal and external factors of the market, the speed to complete the offering and the scale of the underwriting.
Both debt issuances were fully underwritten by Goldman Sachs which is a leading global investment bank.  It is one of a handful of banks with the ability to underwrite debt issuances of this size and scale. The bonds which are issued at a discount to its par value ensures the timely and successful completion of our debt issuances, in what was still a challenging time for the global economy.
With respect to the aforementioned transactions, we have noted with concern the insinuation that Goldman Sachs may have made payments to third parties, an allegation that we deny in unequivocal terms. Goldman Sachs has publicly stated: “Other than legal and accounting firms providing professional services, no fees or commissions were paid by 1MDB or Goldman Sachs to external third parties in connection with these transactions, nor have we ever been asked by 1MDB or others to pay such fees or commissions.”
Debt Levels
Like any major company, 1MDB has raised capital on the international debt markets to finance specific projects, the scale of which has required us to do so. All of our debt is backed by solid assets, and the total value of our assets (RM44.67 billion as at the financial year end of March 2013), comfortably exceeds the value of our total debts (RM37 billion for the same period).
It is also important to note that we have never missed a payment schedule, nor do we intend to do so. Our consistent ability to raise funds on the international markets, and from quality investors, reflects the confidence they place in us. The listing of our energy business is one of a series of exercises that we intend to carry out to deleverage our balance sheet.
Furthermore, we are developing our real estate business with projects such as TRX and Bandar Malaysia.  Over the past year, we have entered into a number of agreements with leading companies and institutions from around the world such as international property and infrastructure group Lend Lease.  All these will lead to an in-flow of capital into Malaysia.  
As we continue to enhance the value of our real estate assets, allowing us to further monetise, with the funds generated being used to drive future growth as well as reduce our debt levels.
Overpaying for Assets
In addition to claims centred around 1MDB’s debt issuances, allegations regarding the amounts paid by 1MDB for its energy and real estate assets have been raised again as well.
Like any other company, we only acquire assets when we are convinced that they represent compelling value for our business. In line with the Government’s strategic aim of ensuring Malaysia’s energy security, we have acquired a number of energy assets since 2012. These acquisitions have allowed us to diversify our fuel mix and country risks, as well as benefit from healthy cash flows and the expertise of their excellent management teams. 
The claims relating to the amounts we paid for our energy assets revolve around values that were attributed to the assets at the time they were acquired and on the basis of certain assumptions made by external parties. However, we take a long term view and consider broader synergies for the group, as well as the social and economic impact on the country, when we evaluate assets and forecast economic returns. As such, we believe that the value we paid for these assets - which may have involved a premium in certain instances, as is common when acquiring another business - is commensurate with their existing and future potential.  
1MDB has also been subjected to claims that it overpaid for land parcels in Penang. The land in question is located in Air Itam, a much sought-after area where property prices have seen a substantial increase in recent years. 
The size of the land acquired will allow us to build close to 10,000 affordable homes, and we intend to use the remaining parcel of land – which would be of a considerable size – for other development purposes from which we would expect to generate significant value. As such, we are confident of adding to the overall value of the land, and believe that the price we paid is commensurate with this. 
This is reflected in the prices that other developers have paid to acquire land in neighbouring areas which, at over RM200 per sq ft, is substantially higher than what we paid. We understand that in one instance, dating back to 2013, approximately 9.8 hectares in Air Itam were purchased for RM267.4 million, about RM251 per sq ft, for a mixed-use development.
Preferential Treatment on Tenders for Power Projects
Our scale as Malaysia’s second largest independent power producer, successful track record in the sector, and experienced management team mean that we are a competitive player in any tender process. Earlier this year, a joint consortium consisting of 1MDB and Mitsui & Co participated in an open and competitive tender exercise for a 2000MW coal-fired power plant known as Project 3B. Following due consideration of the various bids, the Energy Commission announced that our consortium had been chosen as the preferred bidder.
Subsequently, there have been suggestions that 1MDB received preferential treatment, and that our joint bid was not as good as that submitted by other participants in the process. Any award is based on a number of considerations to ensure secure and cost-effective energy supplies to consumers, for instance: the technical standards of the bid, the track record of the company, the bidding price, the urgency of the project and energy security and the whole systems cost of the bid.
As the Energy Commission announced in a public statement, the 1MDB-Mitsui Consortium has won the bidding exercise “in a fair and square manner with a well-proven technology that would enhance security of supply expected of a 2000MW coal-fired power plant operating in a grid system of our size”.
It is also worth noting that 1MDB was not successful in other tenders we have participated in, namely the gas-fired Prai plant bid and the 1000MW coal-fired power plant.  Both projects went to TNB, whom the authorities view as offering a better package, despite 1MDB offering the lowest bid price for the Prai bid.  
Project financing for 3B 
1MDB would like to state that its consortium paid less than RM8 million to assemble and submit our bid for Project 3B. This is about half the amount a business daily claimed other bidders spent for this stage.
To our knowledge, no other bidder has come on record to reveal this information because this is confidential business information. We are making this known because we want to put to rest these baseless insinuations. 
1MDB did not spend US$100million to win Project 3B.  
Upon award, the 1MDB-Mitsui Consortium moved to the next development stage to bring the plant into operation, expected in 2018. This development period thus makes up the bulk of the development costs. 
Development cost or development fee is what is paid to the project sponsor for the development work done by the sponsor to bring the project to realization, from the bid process all the way through to the plant operation. It is not a reimbursement cost. 
For project financing in the power industry, development costs typically run to between 5% and 8%. Our development costs – which are inclusive of any development fees incurred by the project partners, 1MDB and Mitsui – are 5.5% of the project cost, which is at the lower end of the scale.
1MDB is confident of our international-style project financing done in close partnership with our international partner Mitsui, one of the largest general trading companies in Japan. Project financing of this kind where equity is back-ended, is a first for Malaysia but common for large international projects. 
It will help improve the project sponsor’s equity return, due to the effect of time value of money, as the payment is made upfront rather than from the operational cash flow of the project.  The amount is negotiated and subject to lenders’ approval. 
Furthermore, any accusations that our 3B sukuk bondholders will bear any hidden risks are completely untrue and irresponsible. Our bond exercise comes with a bank guarantee which ensures the promoters’ commitment on the injection of equity. The security of cash flow and returns to bondholders is assured. 


  1. I admit not being familiar with all the above concerning 1MDB projects, even how and why 1MDB came into existence. Initially thinking it had something to do with IMalaysia, 1this and 1that, I let it be, being somewhat cynical of Najib's 1thingy.

    And too busy to digest all those written by the 1MDB people and to offer my own comments, I'd rather wait for others to comment first, then perhaps gain a better understanding of them all, and perhaps offer comments thereafter.

    Only 1-2 questions for now - what kind of foreign investments they talking about? Real estate development? Are those our priorities? Wd appreciate anyone in the know giving some insight.

  2. Hahaha. Anybody stupid enough to believe them?

    1. The English grammar is almost excellent and quite impressive.

    2. They are addressing economists, are they? Laymen like me no unnerstand.

      No wander they got so much walloping. Cannot explain to those who have been vocal against them.

      Foreign consultants writing the answers arr?

  3. So 1MDB is a sovereign wealth fund?

    Definition of "SOVEREIGN WEALTH FUND" from Investopedia:

    Pools of money derived from a country's reserves, which are set aside for investment purposes that will benefit the country's economy and citizens. The funding for a sovereign wealth fund (SWF) comes from central bank reserves that accumulate as a result of budget and trade surpluses, and even from revenue generated from the exports of natural resources. The types of acceptable investments included in each SWF vary from country to country; countries with liquidity concerns limit investments to only very liquid public debt instruments.

    1. Still cannot understand what it's all about, Sir.

      I only know YDP Agong as Sovereign. No fund is. And if they muck our funds, it'll be no fun, I assure you.

    2. Hey Dims, YOU'RE REALLY DIM! DIM! DIM!

      We have a good think going here. Where else in the world do you have this?

      It helps us MAXIMISE the Effort : Return Ratio. That's smart business thinking for you.

      Why open the flood gates which now PREVENT COMPETITION, the PRINCIPLE upon which we now have a reasonably good and easy life? You must be NUTS to suggest it.

      Don't talk international. Important thing is: At Least Here We're Top.

      You must be REALLY REALLY STUPID to think that we'll let it go!

    3. Hey 1MDB,

      If you are sincere, you must ELEVATE Your Mental Wave-Length To Our Level.

      Otherwise, just seem like mumbo-jumbo, or you're trying to hoodwink us.

  4. The 1MDB website says it is "a strategic development company, wholly-owned by the Government of Malaysia".

    Why the hell is business the business of a Government? Why can't it focus on the business of governing? Especially when so many things are messy these days. ISA, EO and RRA gone, crime rate been high. Now the Sedition Acts also going and so many are shouting against its going, including most of UMNO Divisions and a few Ministers, too.

    The website also says, "1MDB leads market-driven initiatives to assist the Government in propelling Malaysia towards becoming a developed nation that is highly competitive, sustainable and inclusive."

    What inclusive? Includes NEP? Does NEP have a role in 1MDB? In what ways?

    And why the rush to developed nation status? And whose interests does 1DMB serve?

    1. My hunch is clueless Najib and his incredible cronies are preparing to process Malaysian rakyat in the TPPA mill . . .

      Former prime minister Tun Dr Mahathir Mohamad called on Datuk Seri Najib Razak to prove his leadership strength by keeping Malaysia out of the controversial Trans Pacific Partnership Agreement (TPPA).

      Prime minister Najib said it was evident in Brazil’s 1-7 semi-finals loss to Germany that there was simply no leadership to keep the World Cup hosts’ backline together. hahahaha better you get your "best" eleven to produce results lah!

    2. You must be living in some parallel universe where there is no competition and where education, skills and talent don't matter a damn.

      That may be your opiate and privilege, but the less fortunate among us still have to contend with competition for investments and jobs, without the benefits of "rights" and "privileges".

      Ask Dr Mahathir how Malaysia can continue to progress without foreign investments and trade. By being a net oil producer? By being a hub for Islamic finance and halal products?

      And if Malaysia cannot aspire to "developed nation" status, then what then? Is the NEP going to pay the bills down the road, fix the budget deficit and provide the thousands of good jobs that our young people need and deserve?

      It must be fine to spout dogma and theories when you are not tasked with the responsibility of facing up to competition.

      How moronic is that?

    3. Dims sounds dim.

      What competition are you talking about? Why the hell don't you show which among the 1DMB projects are competitive. And answer, for example, the accusations on 1MDB securing tenders non-competitively. In ways people understand. Talking as if you know but not explaining is dim.

      And who says education, skills and talent don't matter a damn?

      What NEP don't pay the bills? Had it not done so all these years? And who says budget deficit is necessarily bad? You don't know so many counties have budget deficits? You must have our head in your assol.

      Your comment is full of merely your opinions. No hard facts and reliable quote. My comment is better than yours.


      New Zealanders with diverse backgrounds share their thoughts and concerns on the TPPA . . .

      *** "New Zealand has an enviable public health system. To keep it that way we need to be able to make our own decisions over access to medicines, regulation of food safety and potentially harmful products such as alcohol and tobacco. A trade agreement that would subject our own government to the risk of being over-ruled.
      -- Warren Lindberg, CEO, Public Health Association of New Zealand

      *** "There are very many reasons for opposing the TPPA: firstly these are secret negotiations which are anti-democratic and over which we have no say and which could well be treasonable. Secondly, it is clear that the government is committed to an ideology that is damaging New Zealand interests for the sake of their future careers outside politics as we have seen before. Thirdly, the cuts to MFAT and NZTE, and the billions given to foreign-owned corporations such as Telecom, is yet more evidence that the government is not supporting our owncompanies but has sold out to foreign interests and corporate welfare who are making record profits out of this country. Fourthly, our exporters do not need the TPPA as New Zealand is supposedly committed to the WTO negotiations which have stalled precisely because many countries have woken up to the dangers of the same proposals which are now being pushed through the TPPA. Fifthly, the government has shown complete contempt for ordinary Kiwis by even censoring the Briefing to the Incoming Minister of MFAT, in some weird display of Soviet-style stupidity. Finally, the New Zealand government has failed to support New Zealand exporters and even denies there is a problem as with the closure of many businesses and the loss of manufacturing jobs. You have to ask the question, which nation’s interests is it that National claims to represent as it certainly isn’t New Zealand’s?"
      -- Dr.Romuald Rudzki, Founder Director of the New Zealand School of Export. Winner of the FINANCIAL TIMES’ 1996 David Thomas Award.

      *** "The world needs just trade, NOT Free Trade. Unlimited economic growth and wealth accumulation are the pillars of free trade. These violate gospel values. Free Trade contributes to global inequality and injustice. Justice for the poorest members of society will always be the test of any trade agreement."
      -- John Roberts, former president of the Methodist Church of NZ

      *** "We should have international rights of academic freedom and the opportunity to learn, but instead the TPP threatens to give international corporations the rights to profit from our education. We want the rules about international education decided democratically and in public, by teachers, students and communities, not in secret by trade officials and corporate lobbyists."
      -- Dr. Sandra Grey, National President, Tertiary Education Union

      *** "NZ governments fall over themselves to sign free trade agreements where foreign multi-billion dollar corporates come first and indigenous peoples and the Treaty of Waitangi come last. We all remember the savage impact of trade liberalization on workers, particularly Maori in manufacturing jobs; now a TPPA threatens open season on assets, plunder of intellectual and cultural heritage, and health care only the rich can afford. Is this the Aotearoa we want?"
      -- Hone Harawira, MANA Movement Leader

    5. Baradin,

      You sound not accepting the Special Position of the Malays and the Bumiputeras of Sabah and Sarawak.

      Not respecting the Constitution, eh?

      You know what they say to those who don't respect and abide by the Constitution of the country?

      Migrate lah. Been said by a few well known personalities, too.

    6. Anon 23:21

      Like the NEP etc etc is going to pay the bills, attract foreign investors, fix the education system and provide the good jobs that the country needs?

      Wake up & look at the region. Between China and India, and with Indonesia opening up, where will foreign investors put their money?

      Ask MITI and MIDA why, in all their investment promotions overseas, they have always downplayed the NEP, special rights, hiring quotas by race etc, and instead sought to portray Malaysia as moving up the value chain and having an educated multiracial population?

      As for the "migrate threat", that's passé, dude. It's already happening. And it will accelerate with the Asean Economic Community, the TPP, RCEP and FTAA, not to mention the EU-Asean FTA.

      But no worries, those "left behind" can make maximum use of whatever pickings are left!

    7. Dims Baradin,

      You mean to say just discard the NEP like that? No way, man. You people used to clam you pay the most tax. It's no longer true for a long time already. Now you people pay only 40% tax, GLCs pay 40%, the Malays and others pay 20%. So, especially now, no reason why you want to leave us Malays and Bumiputeras of Sabah and Sarawak in a lurch.

      We have the Special Position. You have citizenship right already. You all must respect the quid pro quo for your citizenship. No free lunch, you people say. But you have had free citizenship, we people say. So, be reasonable lorr.

      You cannot get and take everything in this country for yourselves only. Others too have to share the wealth. That you people been the richest in the country for so long is your good luck. Nobody is taking from what you have. NEP is from the enlarged economic pie, remember that.

      Don't give us you hoola baloo about the region, where foreign investors put in their money etc. Going by your argument, just have you people with the knowledge, experience, contacts etc in business in this country and not let others around so as to attract all the foreign investors? Nonsense, innit. Ridiculous, innit.

      Whether MITI and MIDA etc downplayed the NEP in their investment promotions is a different matter. That may be strategy. But the fact remains that if you want everything all for yourselves, where got meaning, where got others accept or agree? Let's not talk about the possible reactions if that happens.

      Those already migrated and planning to do so, passé or what you ultra kiasu blokes call it, do what you like. No such thing as this country going down the drain if you people migrate. Even Robert Kuok said in Kajang some time back that he is twin-footed, Possibly half of his investments if not more are already in China, dude.

      Don't worry, those "left behind" can take the crumbs even if you people go. The British had used the word "transient" on you people when persuading the Malays before Merdeka to agree to citizenship right to the pendatang at Merdeka. Those who respect the citizenship quid pro quo, all the Articles of the Constitution and abide by it are welcome to stay. Others are not.

    8. Dims Baradin30 October 2014 21:21

      The man asked "why the rush to developed nation status?"

      Why must you interpret it as "if Malaysia cannot aspire to "developed nation" status .."?

      Strange, your perception. Stranger still, your argumentation.

  5. Maybe Tun Dr Mahathir can explain it clearly to the rakyat on 23 November.

    Very interesting that he plans to make an important announcement at PERKASA's event.

    Wonder if the coming Perhimpunan Agung UMNO has any interesting "breaking news" kind of happening.

  6. Yang tak paham tu, tak sekolah cukuplah masalah sendiri.

    Sendiri bodoh dan tak bersekolah dan ingat nak berpolitik. Elok tak payah berpandai-pandai.

    Ramai loyar buruk.

    Kan jawapannya jelas dan terang.

    1. Kupra worak ko. Ko Bahasa Inggeris pun tak faham. Orang semua cakap Inggeris ko cakap Melayu.

      And shit kind of comment. Absolutely no substance. If the bastak understands what the IMDB reply above is all about, he would have commented something in praise of any aspect written.

      Damn useless bugger. . .

  7. How much are the remuneration of these top brass of 1MDB. I bet they are paid above average salary for doing below average job. All these are ok as long as they protect their bosses interest. One new appointee describe the job as national service. Just wondering who are the nationals?

  8. I don't understand the world of high finance and would sincerely appreciate it if someone can explain in layman's language if the above really answers the questions raised so far. It's obvious the answers are prepared by CONsultants....does Najib even understand the answers given above? One thing I really don't understand is why do we have to borrow to create a Sovereign Wealth Fund....isn't the funds supposed to come from budget and trade surpluses (according to Wikipedia) and should we have such a fund when we are in deficit?

    1. Glad to know that there are others here like me. There are so many local people on the board and management of 1MDB. But looks like they simply ask the consultants to explain. It ends up like they are explaining to themselves.

    2. "It's obvious the answers are prepared by CONsultants....does Najib even understand the answers given above?"

  9. I always thought 1MDB was 1 Malaysia DeBab. hahahahaha!

    I wait for DrM to speak about it on 23 Nov.

  10. Where is the audit report?

  11. To the Morning, Ms. Annie and brighter days ahead for us ordinary folks all . . .

  12. "Goldman Sachs has publicly stated: “.. no fees or commissions were paid by 1MDB or Goldman Sachs to external third parties in connection with these transactions, nor have we ever been asked by 1MDB or others to pay such fees or commissions.”

    Of course they'd say those. But American firms have been known to be paying those through locals, in various kinds of deals, under various pretexts.

    Goldman Sachs is Jewish, isn't it - Goldman is a Jewish name. Jews are not all angels in business. Remember, the Jew, Madoff, made off with US50 billion of fellow Jews' money in a huge Ponzo Pyramid scheme some years ago. The powerful Israeli Lobby, comprising NeoCons, Jews and Zionists in the US, also claim they don't fund overseas groups to weaken Muslim-led governments all over the world. Yet Malaysia Kini, Suaram and Merdeka Centre admitted receiving foreign funds said to have been arranged by Anwar from those Jews.

    Goldman Sachs public statement does not clear the air regarding allegations of certain people getting a lot of money connected with 1MDB.

    The fact is Najib has become very unpopular with his liberalization, throwing away important laws in the country, rushing to developed nation status disregarding the need for wealth sharing under the NEP, and he should be replaced by UMNO to avoid BN losing at PRU14.

    1. Heh, heh...Goldman Sachs is a Jewish organisation?

      What next? A fatwa against Apple because Apple CEO Tim Cook openly declared that he is gay?

      Is the NEP and "wealth sharing" going to improve Malaysia's competitiveness and its attractiveness to foreign investors?

      I can just picture a Mida/Miti investment promo. "Mari, mari - invest dalam Malaysia. Tapi jangan lupa - kita ada NEP, kita ada 'special rights' dan lain lain".

      "Any takers"?

      What's that - China is more attractive? India is more attractive? Even Singapore?

      Oh, ye of little faith.....

    2. Oh ye of shit faith,

      You forgot that China and India both have some 4,000 years of civilization but only now up and coming?

      China especially was treated like a pariah by the West until only 1-2 decades ago. Foreign investments in China only then, innit?

      No fatwa against Apple Cook. But fatwa against Anwar and you, if you exhibit your gayness in this Muslim country which has laws against sex not in the course of nature, whether you are Muslim or not. Wanna tryit?

      So, change the laws of the country to attract foreign investments? Where you put your head one, Mista, in your assol?

      No bloody reason why NEP doesn't allow competitiveness. It's a matter of how the policy is implemented.

      Oh ye of little brains.

    3. Oh, yah.....China and India have ancient civilizations.

      Compared to them, Malaysia is a parvenu johnny-come-lately, or is it?

      As for changing laws and regulations to attract FDI, isn't that already happening?

      And I love your statement that there's no reason why the NEP doesn't allow competitiveness.

      Is that a double negative or what?

      Let's put it simply so that lay people can understand:

      - does the NEP allow competitiveness?

      - if the answer to the above is "yes", then how is it implemented without racial or hiring quotas?

      - or is it about being "creative" and "fudging"?

      As for LGBT rights, the tide is turning. Let's see how long the world will allow a country to continue discrimination on the basis of sexual orientation without calling it to account.

      And if you say, go to blazes, the world will say good riddance!

      But I think any Malaysian government will not have the chutzpah to make this dare.

      Because the world can get along perfectly well with a marginalised and sidelined Malaysia. Its as simple as that.

      So, save the braggadocio and posturing for the timid and easily intimidated.

      Which foreign MNCs are not.

    4. Anonymous31 October 2014 21:53,

      Yeah, I say, go to blazes, and I say the world won't say good riddance. My opinion is better than yours any time.

      And I think the world will say good riddance to you and the likes of you from Malaysia. Not respecting the history of this country, the NEP, the quid pro quo for citizenship for the pendatang, the Constitution and all. Yeah, I repeat: my opinion is better than yours. My argument top notch.

      And you educed to only being pedantic, correcting others' English written in a hurry. Oh ye of little brains.

      Give you bastards Ah Jib Gor also, you gave him the Chinese tsunami. Bloody ungrateful ingrate of the highest order. That which made even the Prime Minister of the most liberal country in the world, David Cameron of Britain, to say "Multi-culturalism is dead." Then the British authorities started hounding the no valid-pass-holders in the British Chinatowns and elsewhere. Naaah, the world would say good riddance to Malaysia, shit. To you and the likes of you, yes.

      So, you are not easily intimidated? And you think people are out to intimidate you? Isn't that kind of thinking a reflection of being intimidated? Anyway, enough of semantics and arguing on the English language and your ultra kiasu thinking. I wanna whack what actually comes out of your mouth into here.

      Good that "the foreign MNCs are not (intimidated)." So, why the hell did you say the world will say good riddance? Lu kipala pusing ka? Lu sikola mana?

      Lu not Malaysian ha, mocking "Malaysia is a parvenu johnny-come-lately"? Lu Singaporean ultra kiasu? Why, tatak berani comment in Singapore blogs? Takut Lee Kuan Yew tear your balls down and eat them?

    5. Oh ye of little brains Anonymous31 October 2014 21:53,

      Don' blame me for that title conferred upon you. One bloke - maybe you - started it all earlier.

      NEP methods of implementation are not rigid lah. Can be varied. So long as the assisting of the less fortunate continues. The Malays and the Bumiputeras of Sabah and Sarawak. Totaling some 70% of the population. Those who do not have a culture of doing business. The need to bridge the huge economic and educational gap. For long term peace, harmony and stability.

      Know yee, Oh ye of little brains. That the Manchus who conquered and ruled China from the 17th to the early part of the 20th Century even gave your ancestors in south China the tongkat.

      Those in south China were considered "disadvantaged", less progressive than the northerners. They were originally literally the hill tribes of China, the Cina Bukit. The Manchu rulers had a quota reserved for them in the civil service - 25%.

      So apasat lu olang pendatang in Malaysia siutak lapat citizenship right banyak sombong tak mau NEP in Malaysia? Mau kena halau told to migrate ka? Don't remember the quid pro quo ka? If dunno Latin, the meaning is the consideration lorr. The consideration for your citizenship mah. But if you are not Malaysian, don't kepochi here moo.

    6. Oh ye of little brains Anonymous31 October 2014 21:53,

      If you don't believe that your ancestors in south China were considered "disadvantaged", inferior to the northerners, originally being literally the hill tribes of China, given the "tongkat" by the foreign Manchu Rulers who ruled China 17th-20th Century, in the form of 25% quota in the Civil Service of China -

      read "A Short Cultural History of China (600+ pages) by British Professor C.P. Fitzgerald. He lived in China for 5 years, to learn the language, research the materials in the Chinese archives etc, and write books on China.

      A Short Cultural History, he said, because hell of a lot to write about, a lot not favourable to the Chinese, including about corruption which was rife in China over 2,000 years ago, made rampant by the eunuchs, male servants in the Emperors' palaces. They got to positions of influence due to the laziness of a series of only concubine-fcuking Chinese Emperors, who didn't bother to visit the length and breadth of the country, that the first Chin Emperor Shih Huangdi did, and died on one of the months-long excursions.

      The eunuchs' jobs were merely to convey in favourable and productive ways the wishes of the Chinese officials or the commoner Chinese subjects coming all the way form all parts of the country.

      They demanded payment in gold, those male servants from the low class of Chinese society. They had their male organs literally cut off to prevent them monkeying around with the hordes of concubines in the various palace buildings spread out in the huge grounds of the Forbidden City.

      They say your ancestors brought eunuchs to Malaysia, too - with male organs but full of eunuch-ism, bribing here and there in this country. Corruption was hardly known before the advent of you pendatang in large numbers. Yet you talk about the world saying good riddance to Malaysia because of NEP, not because of corruption by your kind. Shit you, Oh ye of little brains.

  13. ".. presenting the other side of the story and allowing readers to develop their own informed views about 1MDB."

    When not presented in terms that the average readers can understand, they'd develop views that Tun Dr Mahathir have presented in his blog and elsewhere thus far.

  14. US$1.75 billion and US$3.0 billion debt issuances underwritten by Goldman Sachs -

    Any idea on the fees or commission paid to Goldman Sachs? Big enough for many tens of million Ringgit "passed on" to anybody in Malaysia in numbered accounts in Switzerland or elsewhere?

  15. "Both these bonds were issued at a discount typical of most bond offerings. Any difference between par value (issued value) and the net proceeds of a bond comprises not only fees and other expenses but also its effective yield, which takes into account the discount and the remaining tenure of the bond."

    Anybody understands the above "explanation"? Can anyone explain here what "comprises not only fees and other expenses but also its effective yield" means? What fees and expenses are referred to above?

    If nobody does, including the "clever" tak pandai Bahasa Inggeris Anonymous30 October 2014 20:12 and the said to be dim Dims Baradin30 October 2014 21:21, can we assume that 1DMB is not interested in making the average reader understand and these two guys mentioned above are talking balderdash.

    1. It's a pity that you are not investment bankers with MBAs and such. They'd know exactly what this is all about.

      Of course, when companies issue sukuk, or the Malaysian government issues bonds, nobody is bothered to ask these types of questions.

      So, there must be an agenda of sorts in going after 1MDB.

      I would have thought that the reasonable question to ask is why set up 1MDB in the first place?

      Isn't Khazanah good enough, or is Singapore's GIC and Temasek viewed as role models to emulate?

      As in, if a city-state with a population of 5 million can sustain 2 well-regarded SWFs, then how can Malaysia not aspire to do likewise?

    2. Woi Titus, how can you be Tuah? Even name also you wanna be seditious against the Malays , ha? Bloody nasty, you, arr? You making fun of the legendary Malay warrior? You should be di-sula di tepi pantai. Know what it means? Ask Anwar Al Juburi.

      Kamon, stupido. If you are you are investment bankers with MBAs and such, you should not be here. But in economics blogs and the like. This is for the layman, man. Don't be silly.

      You ask so many questions critical of others here. If you know the answers, why don't you give them - on those questions that laymen readers here have been asking.

      Simple example: why 10% more fees, commission whatever Goldman Sachs charge 1MDB than the Sarawak company. Try to justify the longer maturity thing etc. Convincingly. Ada bole?

      And who you trying to impress by using the jargon SWF? Lu tarak otak ka? Masuk sini wanting to impress laymen by mentioning SWF that laymen sure tak tau punya. Itu macam bilang pandai ka? Itu macam, bolo lorr.

  16. I think the English is good enough.. its understandable... what you guys are moaning n groaning about is your own lack of depth into the matters... tu la pasai... i am sure if you are the type that reads proper economic review you would hv understand some of these.. ini tak..asyik baca blog2 sampah and all your information are from for me i shall keep my mouth shut coz i this is not my line. If this is a piece from a reputable medical journal i would definately can throw some opinion.

    1. In medical journal only? Why? Got some reasoning problem?

      Hear, hear, old chap, the English people are talking about is not whether it is "good enough" or not. The problem is 1MDB don't explain themselves to be understood by the average reader.

      Are you nuts expecting readers here or in many blogs read the Economic Review or "proper economic reviews"? And implying they shouldn't comment even as laymen? Looks like you not only need a medical journal but a medical specialist doctor. A psychiatrist.

      And if this blog is sampah, why the hell do you bother to come in and leave a comment? Attracted by the comments in here, eh? Sounds like they are reasonable and fairly knowledgable "average reader" in here, don't they?

      And if this is not your line, why didn't you keep your mouth shut completely like you yourself indicated? Yes, something wrong with you. You should see the Psychiatrist.

    2. Aiseh, Mista, if you have "depth into the matters", why didn't you explain what Anonymous31 October 2014 06:08 above you asked?

      Ciakap saja pandai arr?

    3. I read medical journals coz i am a doctor lah stupid! What i am trying to say here is if your knowlegde about economy/trade/business etc are only sourced from sumber2 yg meragukan pliz refrain from commenting.. hangpa nak komen pun biaq la ada sikit kefahamankan... tak le nampak bengong sangat.

    4. No, you don't sound like a doctor, stupid. Doctors would have better use of their time than coming into here at 9.13 am.

      Me? I'm a person of leisure, hehe

      And you also refrain from trying to stop laymen from saying out thier thoughts, d'ya hear.

    5. Please don't simply call a doctor stupid. A physician is an honourable profession which warrants respect from lay people like you. Not all people smart enough to attain excellent grades, attend medical school and qualified to become one.

      *Aku dah back up hang. Pas ni hang kena belanja aku cendol..

    6. Anon 12.08.. tenkiu. To summarize things up i would like to emphasize to budak2 melayu kita that having a little bit of knowledge is dangerous dalam bidang apa pun... kefahaman yg dlm dlm satu2 bidang tu penting before kita bagi opinion dan komen. If not kita jadi momokan orang saja.. kan dah ada apek yg komen org melayu tak tau ekonomi bagai.. ni pasai hangpa semua dok terjah tak tentu pasai. Nobody is stopping layman to post their opinion but no respectable person would want to appear like an idiot kan... cendoi kat aloq staq tak berapa sedap! Kita pekena laksa ikan sekoq lagi cun.

    7. Woi Mamat Anonymous31 October 2014 13:21,

      Jangan lah hang dok tembak temberang sana sini nak tunjukkan hangpa pandai lah konon. Hangpa pass apa, boleh cap kat sini kah hangpa punya sitipiket? Kot mcm depa yang pakai fake PhD tak habaih habaih.

      Now, stu, whether they have little knowledge or not, they can speak up. You buggers say what you know lah, not just talking shit like you do above.

      And you think apek mai sini kata tak tentu arah tak kena tampaq ka? Hang tak baca di ataih tuh?

      Hang tau konomi apakebenda nya? Tak cakap satu hapah pasai konomi pun. Meluat aku tengok oang mcm hangpa nih. Mengarut selalu.

  17. waiting for Tun and Tn.Syed to fry these answers..


  18. Little cutie Annie. Malas nak cakap. My 1 sen comment'

    '1MDB in 2009 was the first Malaysian bond with a 30-year tenure'. DO WE REALLY NEED A 30 YEARS BOND AND KEEP PAYING 14 kesian parti baru yang memerintah terpaksa cari jalan nak menyelesaikan masalah ini. 30 years bond is it really for the benefits of the COUNTRY or ????

  19. The level of stupidity of the melayus here are unbelievable.

    The concept of bond maturity hence the risk as a factor of bond yield pun tak tau?

    Oh yes, biasa pinjam duit tak perlu bayar kan? Hutang kalau tak mampu akan diselesai oleh kerajaan Ketuanan Melayu kan?

    That's why no need to understand the concept risk versus reward kan?

    Ketuanan Melayu lan chiao. Nanti minyak petrol habis, pergi Indonesia jadi kuli.

    Then it will be truly "Orang Merantau". Ptui.

    1. You can comment but dont be rude lah ... apa kena mengena ketuanan melayu and understanding bond??

    2. Mengeji Ketuanan Melayu bhutto kamu. Di tembak mati mcm Presiden Pakistan tuh dulu.

      Kamu jenis lebih teruk dari merantau. Ungrateful ingrate Cina Bukit pendatang DAP. Tahu sikit fasal bond maturity and risk factor, ko ingat semua tahu. Kepala hotak ko.

      Your level of stupidity has gone to stupid arrogance. Talking gangster type. You ought to be shot by your rival gangster.

    3. Apa? Awak bermaksud kalau James Bond dah matured nanti ia akan yield secret agent 007 kah?

    4. Woi, stupid Anonymous31 October 2014 10:03,

      Why can't you comment like Anonymous31 October 2014 08:18? That one has substance.

      Read that over and over again if you don't know.

      biasa pinjam duit tak perlu bayar? So, you blokes just declare yourselves bankrupt? No need to bayar? You names full in the newspapers bankruptcy notices? And pinjam in another name? Called ultra kiasu? Or ungrateful ingrate pendatang?

      See, I don't accuse. I ask questions.

    5. Anon 10:03

      Just make sure if you go to any open function by ketuanan melayu ..
      1. Do not bring tupperware ( tapau not allowed )
      2. Do not potong queue
      3. Park your car properly inside the box

      * white envelope will be given to you after the function
      * about lancau ( im pretty sure yours and all the chinks short n small)
      * congratulations to you for correctly spell ketuanan melayu ( your best achievement since merdeka )

  20. Mahathir is only a doctor. He wouldn't understand either. Some more he's getting old and senile already and need to change his pampers every now and then.

    What sort of astounding speech can you get from an old senile man who is already past his time?

    Soon he may go bonkers if everyone still work the old horse to push the cart.

    Maybe the carrots dangling in front of the horse is the only thing it is chasing still after till death reaches.

    What a sordid life.

    1. This is the same bastak as the 10:03 one. He has no decorum and decency. Allowed in by Annie perhaps so that we can whack him until his shit splutters into his face.

      He knows TDM is as fit and sharp minded as any others. Definitely sharper witted than this bloke who has no substance to write except rude words and name calling.

      No upbringing. Likely to have been left to himself by the pig stay as a child. Going around picking up pig shit and putting it into his mouth periodically. That's why every word he utters smells like pg shit.

      His is not a sordid life. But a stinking, pitiful yet hateful, resented and demented life. Sad. Very sad.

    2. Well, no one has asked Dr M the following:

      1. Why did he approve the awards of the first batch of lucrative IPP contracts?

      2. Why did he approve the privatisation of MAS to Tajudin Ramli and the subsequent repurchase by the government of TR's stake in the national airline?

      3. Why did he approve the setting up of AirAsia when it would impact MAS?

      4. Why did he authorise Daim Zainuddin to negotiate an agreement with the Singapore government on KTM land in Singapore, only to subsequently delay it's implementation?

      Simple questions. Deserving of simple answers.

    3. I wonder who is the rude one? You're as good as an old tape recorder playing the same tune everywhere.

      and stop associating people with other commenters.

      Guess you have been staying in a pig sty before otherwise how you know?

      You can be Hitler's propaganda men but it ain't going to get you anywhere with the kind of intellectual discourse you have.

      Guess you're whole life is always freeloading unto others.

    4. Anonymous31 October 2014 14:40,

      You the same gila man needing to see the Psychiatrist?

      We now talking about 1MDB but you talking about Tun Dr Mahathir?

      Woe lah wei.

    5. Anonymous31 October 2014 14:45,

      You know people here, do you? Shook hands with them? Pally pally with them? Got whacked and wanked by one of them? Good if you did.

      Because you r a dangerous bloke. Claiming to know people just by reading a few of their comments. And coming out with shit statements.

      "stop associating people with other commenters"? What you got mean, one, Mista?

      Hitler's propaganda men? Why you give compliment ha?

      Intellectual discourse? Now sounding intellectual oso? Then, why talk damn rude at 10:03?

      "freeloading unto others"? You the kind who often use such terms as "having free lunch" arr? Yet attend BN campaign dinners bringing tupperware to take food home issit?

  21. Oh Doktor, if you going to do surgery on me, I will firmly request you to honestly tell me my chances of survival and clearly what you plan to remake or remove from inside of my body in plain language. Neither lecture me Biology 101 nor play dumb.

    1. Oooooooo don't ever trust the bastak with your life. I would like to do surgery on him. Without any medical training.

      But don't believe him claiming he's a doctor. Ar best he is a fake. Most likely a dud. Probably a mental case that needs treatment by a Psychiatrist.

      Ok, Annie, I have my turn whacking him already. He deserves it. Not respecting anybody including TDM. How to, when he is a mental case.

  22. Government of Malaysia should not do business period. They should focus on creating opportunities that are condusive for rakyat Malaysia to do business. We already have bloody Khazanah that wasted rakyat's money and now another leech organisation 1MDB to further bleed rakyat's money. We are not merely talking about millions of ringgit down the drain. These buggers gobble billions of usd!! Our future generation's future is at stake. We are spending our oil money unwisely. Once the oil money dries up, with no job opportunies in Malaysia, our youngsters will work overseas as maids and cheap labourers instead :(

  23. tiredofhypocrites31 October 2014 at 12:40

    As mentioned in an earlier comment, Tun Dr Mahatir has put forward his points and questions quite clearly in simple language for everyone to understand.

    Annie has been nice enough to reproduce the full clarification from 1MDB in her blog. Thank you very much. My question is "Who does Annie believe to be telling the truth? 1MDB or Tun?"

  24. 1MDB answers guided by Sir Wenger.

    Read here:

    Difficult for Tun and even Tony Pua to respond.

    Annie should ask for money from 1MDB to support them. 4 million a lot lor..

  25. Dear Annie.
    I don't think it 'clear the air' much. It would be more reliable though, if your readers know who wrote it on behalf of Najib. My wild guest; it must have been written by some foreign MatSalleh consultant.

  26. "Mitsui, one of the largest general trading companies in Japan." So, Mitsui is not a specialist in power generation like TNB is? Still got power generating project in Malaysia?

    "Project financing of this kind where equity is back-ended ..? What does it mean, pray tell.

    ".. is a first for Malaysia"? Does it man that past gomen no good? Could understand such concepts? Now Malaysia on way to developed nation status because of that? Any Any of Malaysia's neighbours done that? For example, Singapore, the country that the ultra kiasus have always opened their mouths wide, in awe? And the backsides agape in excitement on he very mention of that country's name.

  27. Depa tak jawab pun apa Tun Dr Mahathir kata dan perso'al -

    13. Bayaran sebanyak 11.25% dan 9.44% adalah kepada Goldman Sachs, pengurus pinjaman hutang ini.

    14. Sebaliknya sebuah Syarikat Equisar International Incorporated, milik Kerajaan Sarawak membayar Goldman Sachs hanya 1.25% (USD10 million) apabila mengurus pinjaman USD800 million.

    15. Jurucakap Kerajaan menjelaskan bahawa 1MDB memiliki harta bernilai lebih dari RM40 billion sedangkan hutangnya hanya RM38 billion. Oleh itu rakyat tidak perlu bimbang. Tetapi kenapa bayaran kepada Goldman Sachs begitu tinggi?

    1. Aiyoyo, bloody 10 % above the amount charged to Sarawak company.

      Can somebody work out how much for US$1.75 billion and US$3.0 billion debt issuances underwritten by Goldman Sachs for 1MDB?

      US$175 million and US$300 million, innit? That's nearly RM500 million and RM1 billion respectively?

  28. Those who still don't understand, that's why you people are not consultants nor work in high places incharge of economics and finance for the country.

    Most likely brought up as freeloaders for life and always use brute force or expecting others to be their sheep and lambs to the slaughterhouse

    1. You feel being forced to the slaughterhouse? Why? Sad.

      That's why don't try to maintain an arrogant attitude. Otherwise you develop paranioa. Worse still, hallucinating you are being forced to the slaughter house.

    2. Anonymous31 October 2014 14:48,

      "freeloaders for life"? Not using the word "tongkat" that you ungrateful ingrate pendatang used for the Malays?

      You conveniently try to forget - even refuse to learn history and DAP objected to History being made compulsory in schools - ashamed of being reminded that

      - you blokes ran away from the misery and suffering in China

      - were given the tongkat by the British as "coolies" in the mining and later in the plantation sector

      - those who came on their own landed on our shores in Penang and elsewhere, asked for the tongkat and were given one by the British and the Malays, in various forms, including tumpang duduk on State or kampong land

      - then after the British meddled in the internal affairs of this country and ruled as bloody colonizers, they gave your kind the tongkat, again in various forms, including mining land lease, mining license, lottery license and all kinds of gaming - easy money to accumulate as capital for doing business - then license for trading in rubber, rubber smoke houses, and all sorts of other businesses

      - after Merdeka, the Malay-led government gave you blokes tongkat of all sorts again, including the sugar monopoly to Robert Kuok, from which he became a millionaire and later a billionaire. And Daim Zainuddin gave Vincent Tan the lottery license from which he became a multi-millionaire and now a billionaire?

      Yet Robert Kuok had the bloody cheek to announce in Kajang recently that he is "twin-footed". And Vincent Tan again wanted the football betting license from Najib early in his PMship. Bloody ultra kiasu, eh?

      And here you are, the most ultra kiasu of all, the most ungrateful ingrate pendatang, trying to make fun of the Malays as "freeloaders". What kind of a bastard are you, really? The kind left by the pig sty as a child and picking up pig shit, putting it in your mouth periodically?

      Obviously you are making inference on the NEP and the Special Position of the Malays and the Bumiputeras of Sabah and Sarawak under Aricle 153 of the Constitution. Look here, you son of a gun, if you are not happy with, cannot accept and unwilling to respect the quid pro quo for your citizenship right, and cannot live by the Constitution of this country, why don't you migrate?

      Go live in countries whose Constitution you can accept, willing to respect and abide by. You'd be happy, we'd be happy, a win-win situation, man.

    3. Anon 1 Nov 06:33

      Substitute "tongkat" for "walking stick". Or "staff", if we want to bring in Biblical connotations.

      Ungrateful pendatangs, eh? Well, as the saying goes "sticks and stones...."

      "Pendatangs" have been called worse. It's like a rite of passage, like battle!

      Anyway, skills and talent are mobile.

      So, no problems there.

      Anyway, all this talk of quid pro quos is nothing new - it's been raised before, and it will be raised again.

      Pendatangs today. Tomorrow it's competing against other Asians... those who are not bothered by race or religion.

  29. 1MDB explanation if you can call it that, is like a technical essay designed to answer but actually confuse the laymen. It skillfully skip the issue of payment to Goldman Sachs, how much was actually paid.

    Eddy Daud

  30. "we have entered into a number of agreements with leading companies and institutions from around the world such as international property and infrastructure group Lend Lease. All these will lead to an in-flow of capital into Malaysia."

    I have not been getting satisfactory answers on the following question, and will continue asking that and related questions from time to time -

    Is that kind of property development by an international company a priority need in Malaysia? Those companies will be interested in the higher end housing development which brings in more profit? That the kind of housing needs for Malaysians can be met by locally generated investments?

    Is the intention to bring in Chinese from mainland China and Singapore to buy the expensive housing units to be built in Johore, to upset the status quo in terms of the population ratio and wealth distribution among the races? Are they designed to help DAP?

    Is the rush to developed nation status done on a "bo paluli" those disadvantaged communities who do not have a culture of doing business and now expected to compete on a non-level playing field?

    Is it a developed nation status no matter what? Is it asking UMNO to replace Najib? Is it leading to a debacle at PRU14? Kelam kabut, lintang pukang, instability after that?

    Everybody can try to answer those. Including the ungrateful ingrate pendatang Cina Bukit DAP. But, if irresponsible in attitude and wordings in the answers, no guarantee will not be whacked in response.

    Meanwhile, have a good day. Enjoy the week end.

    1. Anon 1 Nov 07:51

      It's interesting that you brought up the situation in Johor.

      Why didn't you mention the big property transactions in Johor involving companies from China and business tycoons from Singapore?

      Did the "S" word deter you? "S" as in "sedition"?

      And this notion of "disadvantaged communities" has outlived it's "sell buy" date!

      The Arabs, for one, have a history of business acumen. As do the Chinese and Indians, among others.

      Is this going to be an excuse in perpetuity?